Professional Documents
Culture Documents
Euromonitor International
September 2020
BEER IN THE US Passport i
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BEER IN THE US Passport 1
BEER IN THE US
HEADLINES
▪ With the COVID-19 pandemic leading to major shutdowns in the on-trade channel, overall
beer sales are declining sharply in 2020
▪ Total volume sales of beer fall by 1% to 23.5 billion litres in 2019
▪ Imported beer continues to see a more dynamic performance than domestic beer in 2019,
while non-alcoholic beer benefits from rising interest and brand development
▪ Non-alcoholic beer records the fastest total volume growth of 15% in 2019
▪ Unit prices for beer rise by 2% in current value terms in 2019
▪ Anheuser-Busch InBev loses share but continues to lead beer with a 42% total volume share
in 2019
▪ Beer to record a negative total volume CAGR of 2% over the forecast period to fall to 21.6
billion litres in 2024
PRE-COVID-19 PERFORMANCE
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BEER IN THE US Passport 2
These small craft brewers, such as Athletic Brewing and WellBeing Brewing, are advertising
their drinks as a responsible, health-conscious alternative to alcoholic drinks aimed at younger
adult consumers – as part of the “mindful drinking” trend. They have appropriated a lot of regular
craft trends, such as IPAs, to make non-alcoholic beer more palatable and interesting, as well
as updating brewing methods to provide higher quality. The new focus on quality has also been
attracting consumers who are curious about these products. Non-alcoholic craft beer brands
have slowly begun to shift perceptions of the category, as opposed to legacy brands, which are
still associated with poor taste, low quality, and struggles with alcohol addiction. Craft non-
alcoholic beers are presented as more of a healthier choice for people seeking to taper off their
alcohol consumption or to better pace themselves while drinking – a high rate of non-alcoholic
beer consumption now happens concurrently with alcoholic beer consumption.
COVID-19 impact
On-trade volume sales of beer are expected to fall by 55% in 2020 in light of the impact of
COVID-19. This compares to the 4% decline forecast for 2020 during research conducted in
May 2019, ie before the spread of COVID-19. Off-trade volume sales of beer, meanwhile, are
expected to increase by 8% in 2020 due to COVID-19’s impact. This compares to an expected
1% decline forecast for 2020 during our research conducted in May 2019.
The early stages of the pandemic saw massive rates of stockpiling among US consumers. As
a result, off-trade sales of beer were seeing strong growth. In addition to grocery stores and
liquor stores remaining open, e-commerce saw huge gains as many consumers opted to order
their beer online. However, on-trade closures will result in an overall negative impact on the
category, with around half of all beer sales normally being made through on-trade channels in
value terms. While closures of bars and restaurants only lasted about a month at a nationwide
level, subsequent regional and local lockdowns, the required reduced capacity at
establishments once reopened and the many permanent closures will mean that 2020 on-trade
sales will be less than half the levels recorded a year earlier in 2019 in value and volume terms.
This will have a lasting impact on the beer category not only in the rest of 2020 but also over the
entire forecast period.
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BEER IN THE US Passport 3
most in 2020. Smaller craft brands rely heavily on traffic through their breweries and brewpubs,
where much of their on- and off-trade sales take place. Craft also skews towards premium
pricing, and, amid economic difficulties, consumers are less likely experiment and spend top
dollar on beer. In the off-trade, the categories that will benefit are in lager, specifically domestic
mid-priced and imported premium products. These two categories were already among the most
popular in beer, and consumers are now seeking out old comforts and reliable pricing. Another
benefit for these lagers is their wide availability and distribution across the country, and their
large multipacks. Cost-conscious consumers have begun purchasing large multipacks both for
the savings and to limit their trips to the store.
CATEGORY BACKGROUND
Premium USD2.44-4.92
Mid-priced USD1.48-2.43
Economy USD0.85-1.48
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note: Price bands for lager are based primarily on price, but positioning and packaging are other factors that
are considered in classification
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BEER IN THE US Passport 4
CATEGORY DATA
Table 2 Sales of Beer by Category: Total Volume 2014-2019
million litres
2014 2015 2016 2017 2018 2019
USD million
2014 2015 2016 2017 2018 2019
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BEER IN THE US Passport 5
Wheat Beer
Lager 80,247.0 80,922.8 81,433.3 82,007.7 82,374.3 83,083.6
- Flavoured/Mixed Lager 1,212.0 1,291.4 1,304.1 1,239.3 1,272.1 1,353.1
- Standard Lager 79,035.1 79,631.4 80,129.2 80,768.4 81,102.2 81,730.5
-- Premium Lager 28,186.4 30,550.0 32,514.7 33,763.7 34,972.7 36,642.5
--- Domestic Premium 10,144.9 11,690.7 12,027.6 12,496.8 13,174.5 13,977.8
Lager
--- Imported Premium 18,041.5 18,859.4 20,487.2 21,266.9 21,798.3 22,664.8
Lager
-- Mid-Priced Lager 34,939.4 33,589.3 32,553.7 32,224.7 31,431.3 30,601.0
--- Domestic Mid-Priced 34,939.4 33,589.3 32,553.7 32,224.7 31,431.3 30,601.0
Lager
--- Imported Mid-Priced - - - - - -
Lager
-- Economy Lager 15,909.3 15,492.1 15,060.8 14,780.1 14,698.2 14,487.0
--- Domestic Economy 15,909.3 15,492.1 15,060.8 14,780.1 14,698.2 14,487.0
Lager
--- Imported Economy - - - - - -
Lager
Non/Low Alcohol Beer 780.1 749.1 733.4 699.9 689.3 737.9
- Low Alcohol Beer 378.8 345.3 334.2 309.7 288.9 271.1
- Non Alcoholic Beer 401.3 403.8 399.2 390.2 400.4 466.8
Stout 1,878.4 2,038.3 2,155.6 2,304.1 2,424.6 2,539.5
Beer 99,142.2 101,517.4 102,745.6 103,662.1 104,309.4 105,389.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
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BEER IN THE US Passport 6
million litres
2014 2015 2016 2017 2018 2019
USD million
2014 2015 2016 2017 2018 2019
% volume growth
2018/19 2014-19 CAGR 2014/19 Total
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BEER IN THE US Passport 7
% total volume
Company 2015 2016 2017 2018 2019
% total volume
Company 2015 2016 2017 2018 2019
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BEER IN THE US Passport 8
% total volume
Brand (Global Brand Company 2016 2017 2018 2019
Owner)
million litres
2019 2020 2021 2022 2023 2024
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BEER IN THE US Passport 9
USD million
2019 2020 2021 2022 2023 2024
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BEER IN THE US Passport 10
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BEER IN THE US Passport 11
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